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We have already discussed resources for the Statistics Board. The Government did not accept our amendments that would have put resources in the hands of a parliamentary commission. That leaves the Government and, of course, the Treasury in charge of resources. The amendments passed last week, which provide that the Cabinet Office, rather than the Treasury, has residual functions, may assist the Statistics Board’s case for resources to be heard in Whitehall, but we know who ultimately controls the purse strings. Whoever sets the level of resources, we believe it important that the board should have a duty to review that resource level and act if it believes that the resources are insufficient. That in turn could generate a debate about the proper level of resources devoted to statistics, which, if the case were well made, could lead to the provision of more resources. There would be no obligation for resources to be provided, but public debate would be encouraged.
We have not yet discussed the resourcing of official statistics prepared outside the board. Problems could easily arise in other departments as a consequence of the resource squeeze that is applied via departmental expenditure limits. Let us take an example. The board could take the view that the crime statistics produced by the Home Office were deficient, but Home Office statisticians could say that the statistics were the best that they could do with the resources that had been made available to them within the Home Office. The
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I am sure that the Treasury will hate this amendment, because it sees itself as the sole arbiter of resource levels in all government departments, but I hope that the Minister will not be bullied by his officials in this case and that he will recognise that there are real issues here. It is clear that statistics have suffered in the past through resource squeezes, and they will almost certainly do so again, quite possibly as a result of the latest budget settlement. The new clause is a modest counterweight against that. I beg to move.
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Lord Newby: I am grateful to the noble Baroness for bringing this amendment forward. It raises a live issue. It is important that the Statistics Board has adequate resources; if it did, one might question whether an amendment was needed to ensure that it could make a noise if there were a problem.
It is important to remind the Committee of the situation in which the ONS finds itself in light of staffing cuts that have been imposed on it by the Treasury. Within the past few months, it has announced that its annual cross-check on the accuracy of the national annual accounts will not be published in full. To quote the ONS, that will create,
The annual statement of the UK’s balance of payments will,
The Bank of England has also expressed concerns that planned so-called “improvements” to the measurement of the service sector are being delayed. Preparations for the 2011 population census are falling behind, as are plans to collect improved immigration data. The ONS has also admitted that a survey on wealth is behind schedule. This is a terrible state of affairs. The amendment would give the new board the maximum chance and, again, the maximum legal cover to make its case to Parliament if it believes that this kind of cost-cutting is jeopardising its ability to do its job properly.
Lord Lea of Crondall: This point will come up later on an amendment that I shall move about location. I would have thought it axiomatic that, if the board is not to be a charade, it must be able not only to monitor resources and the quality of any official statistics but actually to do something about them. If the board is not there for that purpose, it looks right from the start as if it is not being given a reasonable job. That is sending a lad on a man’s errand, as they used to say. I am sure that the Minister can reassure us that it is within the scope of the board to ensure that it has the resources to do the job.
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Lord Jenkin of Roding: I do not want to anticipate the debate on the noble Lord’s amendment, but much of the problem that the noble Lord, Lord Newby, has drawn attention to is the consequence of the relocation of the ONS to Newport. We have already heard that substantial numbers of senior staff concerned with precisely the matters to which the noble Lord referred have proved reluctant to move to south Wales, and that this is hampering the work of the ONS.
To come back to the point of the amendment moved by my noble friend Lady Noakes, I referred in an earlier debate to the European principles on statistics. I do not want to anticipate the amendment that I shall move on that matter, but Principle 3 refers directly to the adequacy of resources. It states:
“The resources available to statistical authorities must be sufficient to meet European statistics requirements”.
Then there is a list of indicators:
“Staff, financial, and computing resources, adequate both in magnitude and in quality, are available to meet current European statistics needs”.
I repeat what I said before; namely, that that includes the statistics needs of individual countries within the European Union. The document continues:
I shall not read it all now, but the clear international requirement of the convention to which we are party is not only that the resources are sufficient but that they are seen to be sufficient and that there are procedures to ensure that they are sufficient. That is what the convention requires. Therefore, it seems to me that my noble friend’s amendment is entirely justified. I hope that the Minister will be able to give her a reassuring reply.
Lord Davies of Oldham: I shall certainly do my best to give the noble Baroness a reassuring reply. We should distinguish between two sets of resources. The resources for the board will comprise a five-year settlement, as we have indicated. Like any other body, it would speak out if it found itself inadequately financed and would identify where new obligations had severely increased costs. We are undertaking a five-year settlement to give the board independence. It will be expected to reach its objectives within that framework of resources.
The other resources to which noble Lords referred concern where the board has identified that a department is falling short in its production of statistics at the appropriate level and quality. It is for the board to draw attention to that, and the National Statistician will take responsibility for doing so. The Minister in charge of the department that produces the statistics will be responsible for meeting such criticism. Those people are accountable for resources and will need to meet any failings identified by the board and to allocate resources accordingly.
I hear what my noble friend Lord Lea said about the present position. We shall discuss the issue of relocation on a later amendment. That precedes the setting up of the board and the new financial arrangements that we have indicated we have in mind. I shall comment on the Newport move in due course, but the ONS
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As regards whether the ONS is able to meet its current obligations, it is embarking on the next stage of modernising the UK national accounts, which will deliver significant long-term benefits. In respect of that, the Blue Book in 2007 will be reduced somewhat in scope to release skilled and experienced staff to carry out the modernisation. The ONS will deliver one significant improvement by incorporating into the national accounts estimates for in-house software development in businesses, which has been a weakness in the past.
Modernisation is going on. I hear what noble Lords say about resources and I accept the obvious point that the board needs resources to carry out its work. It will at times, if the board comments adversely on a range of statistics, be clearly identified that resources will be necessary to be devoted towards improvement. That responsibility is bound to lie with the department or whoever is responsible for such statistics. Within the framework of Clause 8, where the board has to monitor the quality, good practice and comprehensiveness of official statistics, it has the base to achieve what the amendment suggests that it needs to achieve. The powers are there in that clause, and we expect the board and the National Statistician to exercise their powers to reach exactly the objectives identified in the amendment.
Baroness Noakes: It seems to me as if the Minister might even accept my amendment, so much were his words in alignment with what I sought to achieve in it. There are two separate strands. There is the issue of the board’s resources, on which most noble Lords taking part in the debate on the amendment concentrated. I was pleased to hear the Minister say that the board could comment on its own resources; that is at least one bit of reassurance. However, he as usual trotted out the five-year settlement as the answer to all things financial relating to the Statistics Board. We are not convinced that the five-year settlement will prove adequate as it is currently announced. It is not provided for in the Bill, so it applies only to the first five years and does not form part of any argument for the security of the resource levels available to the board.
The Minister sought to make the case that Clause 8 allows the board to comment on the resources that are available in effect to those outside the board who prepare official statistics. I will need to consider that carefully when I read Hansard tomorrow to see whether he has covered everything that I sought to cover in my amendment. I am grateful for his support, but it is a pity that he did not go that little bit further and agree to the amendment. I will look at this again before Report stage. I beg leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 9 [Definitions etc for official statistics]:
[Amendments Nos. 50 and 51 not moved.]
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Lord Jenkin of Roding moved Amendment No. 52:
Clause 9, page 5, line 8, at end insert “, taking account of the principles set out in the European Statistics Code of Practice, the United Nations Fundamental Principles of Official Statistics and any other relevant international codes or agreements”
The noble Lord said: In moving Amendment No. 52, I will speak also to Amendment No. 60 in the name of my noble friend Lady Noakes, which is grouped with it. Amendment No. 52 would require the board when giving,
to take account of the two main international statements of principles; namely, the European code and the United Nations fundamental principles.
In Amendment No. 60, my noble friends have exactly the same objective, but they have linked it to the board’s code of practice. The result might be almost exactly the same, but I see some merit in making the requirement explicit and directly binding on the board, which would happen if it comes into Clause 9, but I would not die in a last ditch for that.
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The two primary international codes are the United Nations Fundamental Principles of Official Statistics, which were adopted in 1994 by the UN Statistics Commission, which describes itself as,
after lengthy international discussion, and the European Statistics Code of Practice, which was a EU Commission recommendation endorsed by EU economic and finance Ministers in November 2005. The EU code, I am advised, explicitly recognises the UN code and is consistent with it. There are other international statistical agreements and principles—I instance the 1993 System of National Accounts—but all such more specific agreements are consistent with the overarching codes.
My argument for making reference to these well respected international codes in the Bill is that it would leave no doubt in the mind of Parliament, government or the board as to the scope of the ground that is to be regarded as the proper territory of the board. Without such express reference, the board might find itself accused of stepping beyond the remit that Parliament intended or act in fear of such criticism. There is almost nothing in the Bill to indicate the nature of the guidance that the board may give. The two codes give express guidance to the board as to what is legitimately within its remit. That is the purpose of including the reference.
Equally important, reference in the Bill to the international codes will remind the board to make sure its guidance is consistent with international expectations or to consider fully the consequences of offering advice that might be seen to be at odds with the international consensus. That is important in building the international credibility of the UK statistical service. The noble Lord, Lord Moser, has already told the Committee that other countries do not face the same problem of the falling-away of public trust and are puzzled as to why we suffer it. Therefore, it is important that we should be able to
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I shall not go through the international codes in detail—they are lengthy documents—but there is nothing in either of them that need cause anxiety. They are the synthesis of good sense in statistical matters. For instance, Principle 1 of the UN code makes it clear that,
- “official statistics that meet the test of practical utility are to be compiled and made available on an impartial basis by official statistical agencies to honor citizens’ entitlement to public information”.
Some people might think that that is a clearer exposition of what the Bill is about than appears in the Bill.
Principle 6 of the UN code states:
“Individual data collected by statistical agencies for statistical compilation, whether they refer to natural or legal persons, are to be strictly confidential and used exclusively for statistical purposes”.
That is an international obligation to which this country has subscribed. Individual privacy, which we shall come to discuss, is a matter of concern to many in this Chamber, and it is helpful to have such a clear statement of principle from the UN.
The UN code has stood the test of time—some 14 years have gone by without significant amendment—and the EU code, while newer, has been accepted by all the European statistical offices as the basis of a Europe-wide assessment function carried out under the principles of peer review. The UK statistical service is, I am advised, to be reviewed against the EU code this year. It would be wrong for the Statistics Board to do anything other than work in close partnership with the EU arrangements.
Amendment No. 52 would expressly import the two conventions into the Bill by requiring that the board take account of those international codes. I beg to move.
Lord Howard of Rising: Our Amendment No. 60 in this group supports the amendment of the noble Lord, Lord Jenkin. We hope that, if the United Kingdom agrees to take note of international principles, encouragement will be given for both this and other countries to move towards a higher world-wide standard.
Lord Evans of Temple Guiting: The Government recognise, along with the noble Lord, Lord Jenkin, the important and valid role that international best practice codes play in the UK statistical system. As the noble Lord mentioned, the Explanatory Notes make clear that the Government expect the board to draw on relevant guidance and principles contained in various documents mentioned by the noble Lord, particularly the United Nations’ Fundamental Principles of Official Statistics, when undertaking its functions.
Having said that, it is potentially unhelpful to place a statutory obligation on the board always to follow specific mandates, not least due to the potentially temporary nature of such guidance, which may of course be updated, revised, renamed or even become
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On Amendment No. 60 and the general approach to the development of the code, the Government’s approach was, as in much of this legislation, not to over-specify the requirement on the independent board as to how it fulfils its duty to develop and produce a code. As set out in Clause 10, however, the board is under an obligation in developing or revising the code to consult those it thinks necessary, and we would expect it to take due account of other relevant principles and guidance. The final content is for the board itself to determine.
We expect a wide consultative process, taking account of many of the important guidance issues which have been mentioned. We also expect the board to look at the commendable work of the Statistics Commission, which has put out its own proposals on a revised code of practice. Again, however, we do not think it appropriate to place statutory obligations upon them, and I repeat that we should leave what is right to the independent board’s judgment.
Lord Jenkin of Roding: I will study what the Minister has said. I take issue with him on the point that, if the United Nations decided—after the comprehensive consultative process when it first introduced the code—that the code required some amendment or strengthening, it would be inconceivable that the board and the whole of the UK statistical system would not want to come into line. His argument that we should not put it in the Bill because it might be changed therefore seems fanciful. The Minister has rather scraped the barrel with his argument against putting this in the Bill, but I will study what he has said. In the mean time, I beg leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 10 [Code of Practice for National Statistics]:
Baroness Noakes moved Amendment No. 54:
The noble Baroness said: Amendment No. 54 has attracted the support of the noble Lords, Lord Moser and Lord Newby. I shall also speak to the other amendments in this group which stand in my name and that of my noble friend Lord Howard of Rising.
In Clause 10 and the scope of the code of practice, we encounter another area of the Bill where the Government will fail to achieve the full potential of
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What we do not support is the Government picking and choosing which official statistics are to be assessed against the code, leading to designation as national statistics. We believe that the distinction between official and national statistics is unhelpful and confusing to lay users of statistics, and simply that no official statistics should be prepared without regard to the code of practice. Our amendments are slightly different from those in this group tabled by the Liberal Democrats, as theirs have a distinction between official and national statistics, admittedly on the basis of being within the control of the board rather than the control of government.
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